This Month's Construction Defect Claims/Litigation Headlines

newspaper headlines thumb4802176To maximize our client’s technology choices, JDi Data continues to deliver value with our premier comprehensive and innovative cost administrative software Vendor Cost Control to facilitate immediate solutions with real time reporting and time saving techniques that lower business costs and provide reconciliation during complex construction defect litigation. We pride ourselves on staying up to date with the latest news in the construction defect industry. Check out a few of this month’s construction defect litigation headlines:

California Supreme Court Binds Homeowner Associations To Arbitration Provisions In CC&Rs – http://bit.ly/VPM08V

The California Supreme Court ruled in Pinnacle Museum Tower Assn. v. Pinnacle Market Development (August 16, 2012, S186149) __ Cal.4th __ [2012 WL 3516134], that arbitration provisions within the covenants, conditions, and restrictions (“CC&Rs”) for condominium projects are enforceable against their homeowner associations. The ruling — two years in the making — was based on legislative history of laws governing common interest developments, and decades of decisional authority involving contracts and arbitration provisions.

Residential Construction Down in San Diego – http://bit.ly/SnZBUT

While new home construction is on the rise in some parts of the country, San Diego has seen a fall, comparing the first seven months of 2012 with the first seven months of 2011, dropping nine percent, according to an article in the San Diego Business Journal. The news isn’t all bad, since although July residential construction dropped sharply, nonresidential construction increased thirty-six percent.

California Lawyer Gives How-To on Pursuing a Construction Defect Claim – http://bit.ly/QXyAEJ

On his recently started blog, Harry Kaladjian writes about construction defect litigation in California. He notes that after taking possession, homeowners sometimes notices problems such as “slab cracks in the garage, water leaking through the ceiling, warped floors, improper framing, cracking stucco, etc.” He goes on to note that once that happens, there are series of things homeowners must do.
The first is to be concerned about the statute of limitations. Then, “once it has been established that defects exist, the homeowner must refer to the ‘Right to Repair Act’ and ‘Calderon Procedures.’” These, he notes set out the “pre-litigation procedures prior to filing a lawsuit.”

Rates to Rise for Construction Insurance – http://bit.ly/PGsGeO

The cost of insuring a construction project is about to go up, according to a report issued by Marsh’s U.S. Construction Practice. Insurance Journal reports that underwriters are seeking to increase rates up to fifteen percent, perhaps even higher for firms with “poor loss histories.” Insurance Journal notes that over the ten years, rates have declined. They quote Michael Anderson of Marsh, “U.S. construction firms are experiencing a much more challenging liability market as underwriters seek to raise rates and restrict coverage to make up for years of soft market conditions.”
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